Mega First Corp. Bhd. · MYX:MFCB
Mega First Corp. Bhd — Q1 2024 Earnings Presentation
98 slides from Mega First Corp. Bhd's earnings presentation, May 30, 2024
Slide 1: 1Q2024 Results Briefing
1Q2024 RESULTS BRIEFING 30 May 2024
Slide 2: Agenda
AGENDA 1. Financial Review For reference (updated) - 1Q2024 Earnings Review 4. Renewable Energy Division - Balance Sheet Review 5. Packaging Division - Cash Flow Review - Capital Deployed 6. Resources Division - Gearing Position 7. Investment in Joint Venture - JV Edenor Technology Edenor Technology
Slide 3: 1Q2024 Earnings Review
1Q2024 EARNINGS REVIEW § Recurrent revenue +5.7% to RM313.5 mil. § PBT +28.1% to RM117.8 mil. § PATNCI +35.3% to RM95.5 mil. § Investment holding & others recorded pre-tax profit of RM6.0 mil, compared to pre-tax loss of RM9.6 mil a year ago. § Current quarter profit attributable mainly to: i. RM22.
Slide 4: Normalised Pre-Tax Profit
Normalised Pre-Tax Profit 1Q2024 1Q2023 YoY Chg 4Q2023 QoQ Chg RM mil RM mil % RM mil % Reported Pre-Tax Profit 117.8 92.0 28.1% 138.8 -15.1% Adjustments:- Share of loss/(profit) in JVs/Associates 13.9 (2.3) 3.9 Additional income tax penalty/(tax penalty write-back) - 14.9 (9.2) Fire incident (insur
Slide 5: Normalised Profit After Tax and Non-Controlling Interest (PATNCI)
Normalised Profit After Tax and Non-Controlling Interest (PATNCI) 1Q2024 1Q2023 YoY Chg 4Q2023 QoQ Chg RM mil RM mil % RM mil % Reported PATNCI 95.5 70.5 35.3% 122.0 -21.8% Adjustments:- Share of loss/(profit) in JVs/Associates 13.9 (2.3) 3.9 Additional income tax and penalty/(write-back) - 17.1 (6.
Slide 6: Renewable Energy Division
RENEWABLE ENEGY DIVISION
Slide 7: Earnings Review - Renewable Energy Division
EARNINGS REVIEW - RENEWABLE ENERGY DIVISION 1Q2024 vs 1Q2023 • Revenue +7.2% to RM137.7 mil: higher hydro energy sales (+6.5%), higher solar energy sales (+53.1%). • Higher hydro energy sales: 7.6% currency gain and 1% hydro tariff adjustment, partly offset by 2.1% decline in sales volume. • EAF -3.
Slide 8: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION - DON SAHONG Don Sahong : January - March Pakse Water Level and Capacity Factor/EAF
Slide 9: Resources Division
RESOURCES DIVISION
Slide 10: Earnings Review - Resources Division
EARNINGS REVIEW - RESOURCES DIVISION 1Q2024 vs 1Q2023 • Revenue +14.3% to RM63.8 mil: higher sales volume of lime products (+9.0%) and forex gain (+7.6%). • Higher sales volume partly due to delayed deliveries from the previous quarter. This also explains the weak 4Q2023 sales. • PBT +148.3% to RM14
Slide 11: Packaging Division
ne | \\ PACKAGING DIVISION
Slide 12: Earnings Review - Packaging Division
EARNINGS REVIEW - PACKAGING DIVISION 1Q2024 vs 1Q2023 • Revenue -0.7% to RM102.8 mil: challenging operating environment and fire incident, partly offset by broader customer base. • PBT (excluding income from insurance claims) +17.6% to RM8.6 mil on improved cost efficiency.
Slide 13: Balance Sheet Review
BALANCE SHEET REVIEW Service concession asset 1,972.3 RM55.1 million translation gain, offset by RM22.9 million amortisation charge. PPE 566.4 RM41.2 million Capex, partly offset by RM9.4 million depreciation charge. About 86% of Capex was incurred by the Packaging Division for new plant constructio
Slide 14: Cash Flow Review
CASH FLOW REVIEW 3-Month Period Ended 2024 2023 {RM mil) (RM mil) After tax cash from operating activities 106.2 155.9 Net cash inflow from non-operating investment activities 49 5.3 Total Cash Made Available to the Group 111.1 161.2 Investing Activities Investment in joint ventures and associates -
Slide 15: Expansionary Investment Capital Deployed
EXPANSIONARY INVESTMENT CAPITAL DEPLOYED 1Q2024: RM153.6 mil 1Q2023: RM41.0 mil
Slide 16: Gearing Position
600.0 500.0 400.0 300.0 200.0 100.0 oo GEARING POSITION 31.12.2020 31.12.2021 mmm Net Debt (RM mil) 31.12.2022 31.12.2023 ——Net Debt/Equity (%) 313.2024 30.0% 25.0% 20.0% 150% 100% 5.0% 0.0% At 31.12.2020 | At 31.12.2021 | At 31.12.2022 | At 31.12.2023] At 31.3.2024 (RM mil) (RM mil) (RM mil) (RM mi
Slide 17: JV Edenor Technology
JV EDENOR TECHNOLOGY 2023 2024 1Q 2Q 3Q 4Q Total 1Q Total (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) (RM mil) Revenue 265.0 220.7 207.8 198.3 891.8 197.9 197.9 EBITDA 43 (1.5) 3.1 3.2 9.1 (10.3) (10.3) Depreciation 9.2 9.1 9.1 9.4 36.8 9.5 9.5 and amortisation PAT (7.3) (18.6) (8.0) (8.2)
Slide 18: Other Updates
OTHER UPDATES Ø Subscription of 13,551,072 Ordinary Shares in CSC Agriculture Holdings Sdn Bhd (“CSCAH”) • CSCAH’s subsidiaries primarily involve in the plantation (using developed modern and innovative techniques as well as automation of planting processes) and wholesale of fruits and vegetables. •
Slide 19: Prospects for Remaining Quarters of 2024
PROSPECTS FOR REMAINING QUARTERS OF 2024 Ø Normalised PATNCI (excluding share of JVs and associates’ earnings and one-off non-operational items) increased by 22.0% YoY to RM98.2 million in the first quarter of 2024 (1Q2023: RM80.6 million). • Underlying strength of the Group’s core businesses. • Imp
Slide 20: Capital Commitment as at 31 March 2024
PROSPECTS FOR REMAINING QUARTERS OF 2024 CAPITAL COMMITMENT AS AT 31 MARCH 2024 Factory construction: RM37.8 mil Hydro: RM112.7 mil Production machinery: Solar: RM175.8 mil RM77.9 mil
Slide 21: Prospects: Renewable Energy Division
PROSPECTS FOR REMAINING QUARTERS OF 2024 Renewable Energy Division Ø 1Q2024 average EAF: 79.3% (1Q2023: 81.9%) Ø PBT for the remaining quarters of 2024 is expected to be primarily boosted by an additional generation capacity from the expected commercialisation of the 5th turbine, partially offset by
Slide 22: Portfolio Summary as at 31 March 2024
PROSPECTS FOR REMAINING QUARTERS OF 2024 PORTFOLIO SUMMARY AS AT 31 MARCH 2024
Slide 23: Renewable Energy Division - Expansion
RENEWABLE ENERGY DIVISION - EXPANSION Renewable Energy Projects on Hand Ø 65 MW 5th turbine expansion of Don Sahong costing approx. US$70-75 million or approx. US$1.1- 1.2mil/MW (vs US$1.4 mil/MW for the first 4 turbines). Construction commenced in December 2021. Expected completion by end-June 2024
Slide 24: 5th Turbine Construction Progress
RENEWABLE ENERGY DIVISION 5th TURBINE CONSTRUCTION PROGRESS
Slide 25: 5th Turbine Construction Progress
RENEWABLE ENERGY DIVISION 5th TURBINE CONSTRUCTION PROGRESS
Slide 26: 5th Turbine Construction Progress
RENEWABLE ENERGY DIVISION 5th TURBINE CONSTRUCTION PROGRESS
Slide 27: 5th Turbine Construction Progress
RENEWABLE ENERGY DIVISION 5th TURBINE CONSTRUCTION PROGRESS
Slide 28: Prospects: Packaging Division
PROSPECTS FOR REMAINING QUARTERS OF 2024 Packaging Division Ø The facilities damaged by fire last September are expected to recommence operations in June 2024. Ø Hexachase’s new factory in Melaka is expected to be finished in July, with the first production line for commercial run in 4Q2024. Ø Stent
Slide 29: Packaging Division - Bangi (Stenta)
PACKAGING DIVISION BANGI (STENTA)
Slide 30: Packaging Division - Bangi (Stenta)
PACKAGING DIVISION BANGI (STENTA)
Slide 31: Packaging Division - Melaka (Hexachase)
PACKAGING DIVISION MELAKA (HEXACHASE)
Slide 32: Packaging Division - Melaka (Hexachase)
PACKAGING DIVISION MELAKA (HEXACHASE)
Slide 33: Prospects: Resources Division
PROSPECTS FOR REMAINING QUARTERS OF 2024 Resources Division Ø The ongoing conflict in the Middle East, particularly in the Red Sea region, could raise global shipping costs and potentially diminish the price competitiveness in certain export markets. Ø The demand for lime products in the region is e
Slide 34: Prospects: Edenor Technology
PROSPECTS FOR REMAINING QUARTERS OF 2024 Edenor Technology Ø The widening loss of Edenor in 1Q2024 was attributable to unexpected plant outage for repairs and upgrades. Ø Barring any further unscheduled plant outages, Edenor’s management is optimistic about a recovery in earnings in the second half
Slide 35: Prospects: Food Security Division
PROSPECTS FOR REMAINING QUARTERS OF 2024 Food Security Division Ø 6,428-hectare concession land in Mondulkiri Province, Cambodia. Ø Planted a cumulative area of about 2,560 hectares – 1,830 hectares of coconut and 730 hectares of macadamia. Ø Coconut trees are expected to progressively reach commerc
Slide 36: Prospects: Food Security Division (CSCAH)
PROSPECTS FOR REMAINING QUARTERS OF 2024 Food Security Division Ø Management further strengthens and expands the Division by acquiring a 40% effective equity interest in the business of CSCAH and its operating subsidiaries. Ø Fruits and vegetable farming and wholesaling. Ø 1,100 acres of farmland in
Slide 37: Food Security Division - CSC Agriculture Holdings
FOOD SECURITY DIVISION CSC AGRICULTURE HOLDINGS
Slide 38: Food Security Division - CSC Agriculture Holdings
FOOD SECURITY DIVISION CSC AGRICULTURE HOLDINGS
Slide 39: Key Sustainability Updates
KEY SUSTAINABILITY UPDATES Wepp 1. Received a ‘C’ score from CDP for Climate Change questionnaire submitted in 2023 based on 2022's performance. 1. Launch of MFCB's first corporate newsletter. 2. Sustainability engagements with the main Divisions to set individual ESG targets and goals. . Launched o
Slide 40: Our Sustainability Strategy
OUR SUSTAINABILITY STRATEGY
Slide 41: Our Sustainability Plan for 2024
OUR SUSTAINABILITY PLAN FOR 2024
Slide 42: Environment Dashboard - Jan-Mar 2024
ENVIRONMENT DASHBOARD - JAN-MAR 2024
Slide 43: Social Dashboard - Jan-Mar 2024
SOCIAL DASHBOARD - JAN-MAR 2024
Slide 44: Safety Dashboard - Jan-Mar 2024
SAFETY DASHBOARD - JAN-MAR 2024
Slide 45: Governance Dashboard - Jan-Mar 2024
GOVERNANCE DASHBOARD - JAN-MAR 2024
Slide 46: Remaining Slides for Reference (Updated)
Remaining Slides for Reference (Updated)
Slide 47: Renewable Energy - Don Sahong
RENEWABLE ENERGY DON SAHONG
Slide 48: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 49: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG • 260 MW run-of-river hydropower project located on the mainstream of the Mekong River in Southern Laos. • High projected average Energy Availability Factor (EAF) of 89% (2023: 91.4%) compared to other large hydro of between 40-70%. • Projected average energy gen
Slide 50: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 51: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 52: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 53: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 54: Renewable Energy Division - Don Sahong
RENEWABLE ENERGY DIVISION DON SAHONG
Slide 55: Don Sahong: 2022-2023 Pakse Water Level and Capacity Factor/EAF
RENEWABLE ENERGY DIVISION DON SAHONG Don Sahong : 2022-2023 Pakse Water Level and Capacity Factor/EAF
Slide 56: Renewable Energy - C&I Solar
RENEWABLE ENERGY C&I SOLAR
Slide 57: Renewable Energy Division - C&I Solar
RENEWABLE ENERGY DIVISION C&I SOLAR
Slide 58: Renewable Energy Division - Financial Highlights
RENEWABLE ENERGY DIVISION FINANCIAL HIGHLIGHTS
Slide 59: Renewable Energy Division - Strategy & Strength
RENEWABLE ENERGY DIVISION STRATEGY & STRENGTH Strategy • Leveraging current strong and stable cashflow of approx. RM500 mil per annum from existing RE portfolio to pursue selective RE opportunities in the region. Strength • Strong project management/execution track record → Don Sahong completed sign
Slide 60: Renewable Energy Division - Investment Approach
RENEWABLE ENERGY DIVISION INVESTMENT APPROACH • New investments must fulfil the following criteria: 1) Attractive project IRR (varies between markets) 2) Project manageability 3) Project bankability 4) Project risk acceptability • Avoid herd instinct. • Strict investment discipline.
Slide 61: Packaging
PACKAGING
Slide 62: Packaging Division
PACKAGING DIVISION Mission statement “To become a leading provider of innovative, environmentally sustainable, safe and competitive packaging solutions” The division currently manufactures and sells paper bags, flexible packaging products, and stickers and labels. Global trends • Consumers and our c
Slide 63: Packaging Division - Differentiating Strategy
PACKAGING DIVISION DIFFERENTIATING STRATEGY • We develop packaging solutions that promote the use of ONLY fully recyclable materials (e.g. paper and mono-family plastic materials). • Malaysia’s first and only manufacturer that only uses 100% toluene-free print ink and solvent-free lamination process
Slide 64: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Fuji Kikai Printing Machine Fuji Kikai 14 colours Rotogravure Printing Machine
Slide 65: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Super Combi 5000 Super Combi 5000 Lamination Machine
Slide 66: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Flat Handle Paper Bag Machine Twisted Handle Paper Bag Machine
Slide 67: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY SOS Machine Flat & Satchel Bag Machine
Slide 68: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Reifenhauser LLDPE Line Vacuum Metallizer Slitter for Metallized Film
Slide 69: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Reifenhauser LLDPE Line Vacuum Metallizer
Slide 70: Packaging Division - State-of-Art Machinery
PACKAGING DIVISION STATE-OF-ART MACHINERY Bruckner OPP Line High Capacity Roll Slitting and Winding Machine
Slide 71: Packaging Division - Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 72: Packaging Division - Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 73: Packaging Division - Product Range
PACKAGING DIVISION PRODUCT RANGE
Slide 74: Packaging Division - Financial Highlights
PACKAGING DIVISION FINANCIAL HIGHLIGHTS
Slide 75: Resources
RESOURCES
Slide 76: Resources Division Profile
RESOURCES DIVISION PROFILE • Largest quicklime producer in Malaysia with 1,960 tonne per day installed kiln capacity. • Owned one of the largest limestone reserves, sufficient for more than 100 years supply. • Wide industrial applications: steel, mining, pulp and paper, agriculture, construction mat
Slide 77: Resources Division Success Factors
RESOURCES DIVISION SUCCESS FACTORS • Fully integrated facilities • Own high purity limestone reserves, on-site and at vicinity • High and consistent lime quality • Cost leadership • Diversified customer base
Slide 78: Resources Division Mission & Financial Highlights
RESOURCES DIVISION MISSION & FINANCIAL HIGHLIGHTS Mission • To be the leading lime producer in the region • 2015-2018: Completed massive expansion plan. +160% increase in kiln capacity 760 tonnes 1,960 tonnes per day • Current plant utilisation rate approx. 70% Financial Highlights
Slide 79: Investment in Joint Venture - Edenor Technology
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY
Slide 80: Investment in Joint Venture - Edenor Technology
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY • A 50:50 JV between MFCB and 9M Technology Sdn Bhd (RM40 million paid up capital). • Set up to acquire Emery’s Asia Pacific oleochemical business from Sime Darby Plantation Berhad and PTT GC International Limited (“Acquisition”). • The Acquisition was c
Slide 81: Emery's Asia Pacific Business
INVESTMENT IN JOINT VENTURE EDENOR TECHNOLOGY Emery’s Asia Pacific business • Integrated 300,000-tonne per annum capacity oleochemical complex on a 34-acre site at Telok Panglima Garang. • Original plant cost: > RM1.1 billion • Plant book value @ 31 Oct 2021: approx. RM430 million • Plant Acquisitio
Slide 82: Edenor Technology Plant Site
EDENOR TECHNOLOGY PLANT SITE
Slide 83: Edenor Technology Plant Layout
EDENOR TECHNOLOGY PLANT LAYOUT
Slide 84: Edenor Technology TPG Plant
EDENOR TECHNOLOGY TPG PLANT
Slide 85: Investment in Joint Venture - Turnaround Strategy
INVESTMENT IN JOINT VENTURE TURNAROUND STRATEGY • Full set of new management team in place. • Major cultural and operational transformation underway. Key turnaround strategies • Simplify management processes: leaner, and more responsive and effective. • Revamp purchasing, lower cost of goods/service
Slide 86: Food Security
FOOD SECURITY
Slide 87: Food Security - Respect Nature, Work With Nature
FOOD SECURITY “RESPECT NATURE, WORK WITH NATURE” • Water and irrigation key to sustainable cultivation: 1) Protect and improve O’plai River catchment areas to collect and store rainwater; 2) Development wetland pockets, creation of mini lakes along extensive riparian corridors. • Development of comp
Slide 88: Food Security - Cambodia Concession
FOOD SECURITY • MFCB obtained approval from the Royal Government of Cambodia for the concession of a plot of land measuring 6,428 hectares situated in Mondulkiri Province, Kingdom of Cambodia for agricultural development. • The term of the concession is 50 years, commencing from 29 April 2013. • Mai
Slide 89: Food Security - Cambodia
FOOD SECURITY CAMBODIA
Slide 90: Food Security - Cambodia
FOOD SECURITY CAMBODIA
Slide 91: Food Security - Cambodia
FOOD SECURITY CAMBODIA
Slide 92: Food Security - Cambodia and Malaysia
FOOD SECURITY CAMBODIA MALAYSIA
Slide 93: Food Security - Malaysia
FOOD SECURITY MALAYSIA
Slide 94: Food Security - Malaysia
FOOD SECURITY MALAYSIA — JAMBU AIR, PINK GUAVA AND CEMPEDAK FROM AYER HITAM FARM
Slide 95: Food Security - Malaysia
FOOD SECURITY MALAYSIA NANGKA FROM JEMALUANG FARM
Slide 96: Food Security - Malaysia
FOOD SECURITY MALAYSIA 4 CALAMANSI, PANDAN COCONUT & CURRY LEAF FROM BIODESARU/SEDILI FARM
Slide 97: Food Security - Malaysia
FOOD SECURITY MALAYSIA Ml 0 RS Gece aa DURIAN FROM ULU TIRAM FARM
Slide 98: Thank You!
THANK YOU!
Mega First Corporation Berhad — Q1 2024 Earnings Presentation on 6ix